Morning Market Brief 22nd Sep. 2020

The Benchmark KSE100 index have succeeded in bouncing back after getting support from supportive trend line of its rising wedge during last trading session, but it's still caged in an uncertain region because there are still chances that it may face rejection from its previous top. Mean while it's also being capped by a strong horizontal resistance at 42,900pts which would try to push index downward in case of bullish spike and it would remain in range bound situation until it would not succeed in closing above 43,000pts on daily chart. While on flip side in case of rejection from its resistant regions index would try to find ground at 42,200pts and 42,000pts in case of bearish breakout below 41,900pts index would enter into corrective zone of its previous bearish rally. While penetration below that region would gave a bearish breakout of its rising wedge which would change investor sentiment as well.

Asian shares extended losses for the second day on Tuesday while the dollar rose, as possible delays in expanded U.S. stimulus and concerns about fresh pandemic lockdowns in Europe knocked investor sentimentMSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.5%. Australia's S&P/ASX 200 .AXJO dropped 0.7% pressured by miners and energy stocks, while China's blue-chip index .CSI300 shed 0.1% and Hong Kong's Hang Seng index .HSI was down 0.5%. Japanese markets were closed for a public holiday. After-hours trade pointed to further selling pressure on Wall Street on Tuesday, with S&P 500 futures ESc1 down 0.2% in early Asia and Nasdaq 100 futures NQc1 off 0.4%. “We can’t see any positive news on the horizon in the near-term for the markets to rebound,” said Steven Leung, executive director for institutional sales at Hong Kong brokerage UOB Kay Hian..Read More...

Exports from the country, in rupee term, increased by 1 per cent during the first two months of the current fiscal year as compared to the corresponding period of last fiscal year, Pakistan Bureau of Statistics (PBS) reported. The exports from the country during July– Aug (2020-2021) were recorded at Rs599,260 million as against Rs593,306 million during the corresponding period of last year, showing an increase of 1 per cent, according to provisional data released by PBS. However, on year-on-year basis, the exports from the country decreased by 9.57 per cent in August 2020 when compared to the exports of August 2020. The exports in August 2020 were recorded at Rs265,605 million as against the exports of Rs293,718 during August, 2019. Read More...

The incumbent government is working to privatise 19 Public Sector Entities (PSEs) simultaneously including Pakistan Steel Mills (PSM) and Pakistan International Airlines owned Roosevelt Hotel, New York. The privatisation commission had already started the privatisation of federal government owned properties from 7th September. The privatisation commission had privatised 20 properties in four cities with Rs1 billion proceeds. The process of selling federal government owned properties would culminate on 28th of September with the auction of the biggest property, worth more than Rs5 billion. The government is expecting to generate more than the estimated amount of Rs6.62 billion from selling properties. The government had already decided that 90 per cent of sale proceed will go for debt retirement and rest of the 10 per cent for poverty alleviation. Read More...

The sale and production of cars decreased by 0.42 per cent and 42.97 per cent respectively during the first two month of current financial year 2020-21 compared to corresponding period of last year. During the July-August 2020, as many as 20,008 cars were sold against the sale of 20,094 units while the production of cars decreased from 27,108 units to 15,457 units, showing negative growth of 0.42 and 42.97 per cent respectively, according to Pakistan Automobile Manufacturing Association (PAMA). Among cars, the sale of Honda cars increased by 63.79 per cent from 2,558 units during last to 4,190 units during current year while Suzuki Swift sale also grew by 11.83 per cent from 338 units to 378 units. The sale of Toyota Corolla went down from 3,708 units to 2,395 units, showing decreased of 35.40 per cent, the data revealed. Read More...

Wapda Chairman Lt. Gen. Muzammil Hussain (Retd), said that the share of hydropower would gradually be increased in the total energy mix that would reduce the cost of doing business and facilitate the growth of business activities. He said this while exchanging views with a delegation of Islamabad Chamber of Commerce and Industry that called on him led by ICCI President Muhammad Ahmed Waheed. ICCI Vice President Saif ur Rehman Khan, ICCI former Senior Vice President Malik Sohail Hussain and FPCCI UBG Chief Coordinator and Muhammad Aslam Khokhar were in the delegation. Lt. Gen. Muzammil Hussain (Retd) gave a detailed briefing to the ICCI delegation about the dams and water reservoir projects being constructed by the Wapda in the country. Read More...